Graham Urges Gas Tax Hike To Meet Road Needs

April 6, 1985|By Linda Kleindienst, Tallahassee Bureau Chief

TALLAHASSEE — Higher taxes, along with a series of cost-cutting measures and money transfers, will guarantee that a $9.91 billion road building program adopted in 1983 becomes reality by 1990, state officials said Friday.

Gov. Bob Graham officially announced his call for an increased sales tax on gasoline shortly after state transportation officials confirmed they expect a $618 million cash shortfall during the next five years.

The governor`s suggested tax increase would be imposed only if the U.S. Supreme Court agrees to hear a lawsuit filed by airlines challenging the state`s tax on aviation fuel. That suit has tied up $266 million in tax revenues which the state had been counting on to build new roads and bridges.

In a five-point program designed to ease the $618 million shortfall in the transportation plan adopted by lawmakers in 1983, Graham suggested increasing the sales tax on gasoline from 5 percent to 6 percent if the airline money remains frozen. State officials hope to get a decision on that from the high court by mid-May.

``If the court does agree to hear this complex case, then resolution of this matter will be significantly postponed,`` Graham said. ``If that happens, we will need additional revenues to meet the transportation commitments we made in 1983.``

The gasoline surcharge, if adopted by the Legislature, would add $250 million to the Department of Transportation coffers over the next four years. Graham has suggested a four-year limit to the tax.

``We intend to deliver the specific projects from the 1983 plan as close to their original schedules as possible and maintain major transportation program objectives, such as completion of the interstate system and preservation of our other highways and bridges,`` Graham said.

The governor`s proposal was well received by Senate President Harry Johnston, D-West Palm Beach, who previously indicated he would support a gasoline tax increase to fund the DOT`s road program.

``I`m committed to the 1983 plan and whatever it takes to get there,`` Johnston said. ``If we lose the jet fuel case, I think we are looking at a gas tax increase for four years. I`m hoping we will win the case and not have to raise taxes.``

Graham also has endorsed a plan by House Transportation Chairman Steve Pajcic, D-Jacksonville, to save money by some reorganization within the DOT.

According to Deputy Transportation Secretary Tom Lewis, several key expenditure reduction proposals could save the state up to $75 million over a five-year period.

Those proposals include:

(BU) Hiring 15 new truck inspectors at a cost of $500,000 the first year to help generate up to $5 million in additional revenue a year through stricter enforcement of truck weight and licensing laws.

``Right now we have trucks in Florida driving with a Volkswagen license tag on them,`` Lewis said. ``That`s the difference between $14 and $900.``

(BU) Putting a ``reasonable`` limit on attorney`s fees in condemnation cases by requiring the attorneys to submit a detailed invoice for their services. No such requirement exists today.

The DOT also hopes the Legislature will look at a proposal which provides the state will not have to pay attorney fees in condemnation cases in which a court award is no greater than the state`s last offer for the property prior to the court action. The hope, Lewis said, is to cut down on frivolous court cases.

``Right now we`re one of the few states that pays your legal fees, win, lose or draw, and that`s not fair,`` Lewis said.

(BU) Ensuring that when the state buys a piece of property for a road right of way it doesn`t pay a price that is artificially elevated by the construction project.

Lewis said that the department, which previously adjusted the road program to absorb a $414 million shortfall in tax revenues because of declining gas prices and consumption, has the means to channel $343 million into the program with legislative assistance. That money could come from toll revenues on Florida`s Turnpike and money that had previously been earmarked for interstate projects.

Out of the $618 million cash shortfall, that would then leave $275 million unfunded. That money would come from a legislative mandate to stop gas tax revenues from fluctuating with the price of gas and either recovery of the airline money now being held in escrow or the gas tax increase.